aqualis.no

Pareto Oil & Offshore conferenceSeptember 15, 2016

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This Presentation has been produced by Aqualis ASA (the “Company” or “Aqualis ”) solely for use at the presentation to investors and other stake holders and may not be reproduced or redistributed, in whole or in part, to any other person. This presentation is strictly confidential, has not been reviewed or registered with any public authority or stock exchange, and may not be reproduced or redistributed, in whole or in part, to any other person. To the best of the knowledge of the Company, the information contained in this Presentation is in all material respect in accordance with the facts as of the date hereof, and contains no material omissions likely to affect its importance. However, no representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, neither the Company nor any of its subsidiary companies or any such person’s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this Presentation. This Presentation contains information obtained from third parties. Such information has been accurately reproduced and, as far as the Company is aware and able to ascertain from the information published by that third party, no facts have been omitted that would render the reproduced information to be inaccurate or misleading.

This Presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words “believes”, expects”, “predicts”, “intends”, “projects”, “plans”, “estimates”, “aims”, “foresees”, “anticipates”, “targets”, and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. None of the Company or any of its parent or subsidiary undertakings or any such person’s officers or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. The Company assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to our actual results.

AN INVESTMENT IN THE COMPANY INVOLVES RISK, AND SEVERAL FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT MAY BE EXPRESSED OR IMPLIED BY STATEMENTS AND INFORMATION IN THIS PRESENTATION, INCLUDING, AMONG OTHERS, RISKS OR UNCERTAINTIES ASSOCIATED WITH THE COMPANY’S BUSINESS, SEGMENTS, DEVELOPMENT, GROWTH MANAGEMENT, FINANCING, MARKET ACCEPTANCE AND RELATIONS WITH CUSTOMERS, AND, MORE GENERALLY, GENERAL ECONOMIC AND BUSINESS CONDITIONS, CHANGES IN DOMESTIC AND FOREIGN LAWS AND REGULATIONS, TAXES, CHANGES IN COMPETITION AND PRICING ENVIRONMENTS, FLUCTUATIONS IN CURRENCY EXCHANGE RATES AND INTEREST RATES AND OTHER FACTORS.

SHOULD ONE OR MORE OF THESE RISKS OR UNCERTAINTIES MATERIALISE, OR SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THIS PRESENTATION. THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE OR CORRECT THE INFORMATION INCLUDED IN THIS PRESENTATION.

By attending or receiving this Presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company’s business. This Presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities in any jurisdiction to any person to whom it is unlawful to make such an offer or solicitation in such jurisdiction.

Disclaimer

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Energy consultancy with strong market niche positions

Offshore Oil and Gas Offshore renewables Solar1

Enhanced service offering through the groups global network, client base, resources and expertise

• Global presence with established market position

• Marine consultancy and engineering services

• Clients: Asset owners, oil companies, EPC contractors, financial institutions, insurance companies

• Main activity in Europe

• Geotechnical & engineering, project management and due diligence for technology, projects and markets

• Clients: Developers, utilities, vessel owners, financial institutions, insurance companies, investors

• Strong position in Germany. Growing in Japan

• Technical services for the entire life cycle of PV plants

• Clients: PV manufacturers, plant operators, EPC contractors, financial institutions, insurance companies, investors

1) Aqualis has an ownership of 49.9% in ADLER Solar

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Corporate HQ: London

Operating in 22 offices in 15 countries

Approximately: 175 FTEs1

Traded on Oslo Stock Exchange

No interest bearing debt

ISO 9001:2008 & 18000:2007 approved

1) Per June 2016. Including FTE subcontractors but excluding ADLER Solar. Adler Solar has ~100 employees

Energy consultants to the oil & gas, offshore renewable and solar sectors

Global footprint – active in all major oil and gas regions

RIO DE JANEIRO

MEXICO

HOUSTON

OSLO/SANDEFJORDKRISTIANSUND

SINGAPORE

SHANGHAI

DAMMAM

DUBAIABU DHABI

MANAMA

LONDON

KUALA LUMPUR

ABERDEEN HAMBURG/BREMEN

DOHA

BUSAN

MUNICH

YOKOHAMA

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Aqualis’ competitive advantage

Global service offering

Quality

Flexibility

Experience

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Offshore Oil & Gas- Service offering covering the life cycle of offshore assets

Offshore renewables

Offshore Oil & gas

Solar

Project initiationEngineering / design phase

Project procurement

ConstructionHook-up and

commissioningAsset

managementDe-

commissioning

Marine project / asset life cycle

Aq

ual

is O

ffsh

ore

serv

ice

s

Engineering (niche-focus):

Basic / conceptual design / FEED

Modifications and upgrades of drilling rigs / FPSOs / FSOs / lift-boats

Transportation & installation analysis

Inspection & approvals:

Marine warranty services

Mooring analyses

Condition and suitability surveys / audits

DP inspections and audits

Jack-up site assessments

Construction yard supervision:

Site attendance on behalf of owners, shipyards, financial institutions, 3rd

parties

Conversions & upgrades + New-builds

Due diligence / compliancy; financial community focus

Marine operations:

Transport and installation services; “moving of offshore assets”

Rig moving

Float-overs

Site attendance & procedure management

Aqualis’ key competencies cover both offshore opex and capex cycles

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• Assessment of vessel requirement vs. capabilities

• Design review, professional peer review

• Assessment of owner, project management team

and project plans/schedule

• CAPEX/OPEX budget evaluation

• Identify delay risks and other project risks

• Pre- and post- contract reviews

• Yard evaluation and inspection

• Verification of project progress / payment

milestone audits

• Suitability survey, condition survey, assessment

of vessel function

• Lifetime assessments

Overview of services offered

Audit of drillship for stacking: Verify preservation of entirevessel, mooring arrangement, implementation of classrecommendations, competence of crew/watch-men, lay-upplan, opine on deactivation, stacking and reactivation costs

Audits of new semi-submersibles under construction: Verifyand opine on schedule, progress, approve further drawdownon loans, budget yard capacity, experience, plans, executionand opine on delay risks and other risks to the project

Technical due diligence of floating production unit:Inspections and opine on condition and function, budgets, andlifetime extension

Audit of existing semi-submersible during yard stay: Verifyand opine on schedule, progress, budget, owner and yardcompetence, capacity, experience, plans, execution. Opine onremaining lifetime after yard stay

Offshore Oil & Gas- Technical Due Diligence services

Offshore renewables

Offshore Oil & gas

Solar

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NOCs / IOCs Offshore contractors / shipyards

Underwriters / financial institutions

Offshore Oil & Gas- Extensive client list

Rig / vessel owners

Offshore renewables

Offshore Oil & gas

Solar

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Offshore renewables- Broad service offering with a high reputation

Offshore Wind Project Lifecycle

Geotechnical & Engineering• Ground model development• Managing, designing and overseeing

site investigation campaigns• Front End Engineering Design (FEED) • Design of cable routes and landings• Cable burial risk assessments• Review of foundation designs• Review and specialist consultancy

advice on grouted connection designs• Leg Penetration Analyses• Pile driveability assessments• Layout concept and optimisation• Rock dumping intervention• Remedial burial work on export and

inter-array cables

DevelopmentPre-

construction Construction Operation

Tech & Commercial Project Mgmt• Develop contracting strategies• Contractor selection & qualification• Managing procurement processes• Noise control• Construction management• Management of load out and

transportation• Marine co-ordination & advisory role• Installation programme analysis and

weather simulation• Offshore installation management• Project interface management• Work package management• Project peer reviews –schedule,

contracting, procurement, CAPEX, budget

• HSE management

Consultancy• Marine warranty services• Site specific engineering assessments• Assisting to mobilise project finance• Client representative• Technical due diligence and review of

investment decisions• Review of potential licence areas• Bidding support for developers• Development, management or review

of project CAPEX models• Project risk management• Analysing wind energy output• Export cable O&M and contingency

advisory• Extended project life assessments• Decommissioning studies & projects

Offshore renewables

Offshore Oil & gas

Solar

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|

• East Anglia ONE (UK)

• Navitus Bay (UK)

• Kentish Flats Ext (UK)

• West of Duddon Sands (UK)

• Galloper (UK)

• Beatrice (UK)

• Hornsea (UK)

• Neart na Gaoithe (UK)

• London Array (UK)

• Walney 1 & 2 (UK)

• Barrow (UK)

• Lincs (UK)

• Gunfleet Sands (UK)

• Ormonde (UK)

• Robin Rigg (UK)

• Westermost Rough (UK)

• Gwynt y Mor (UK)

• Triton Knoll (UK)

• Wikinger (DE)

• Borkum West II Phase 1 & 2(DE)

• Nordsee Ost (DE)

• Hornsea (UK)

• Horns Rev 3 (DK)

• Fecamp (FR)

Note: Excludes work on assignments considered confidential, so above project list is not exhaustive.

4.0 GW

6.1 GWGeotechnical assessment & support:

5.4 GWProject management & support (incl. construction):

Subsea cables consultancy (route, risk, remediation):

2.2 GWOffshore Substations advisory:

2.3 GWTDD & Peer Review of offshore wind projects:

20.0 GWTotal Experience

Selected clients Selected projects

Offshore renewables- Strong track record and expanding client list

Track record

Offshore renewables

Offshore Oil & gas

Solar

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Solar- Broad service offering with strong reputation

Offshore renewables

Offshore Oil & gas

Solar

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Solar- Strong track record

100 MW

650 MW

> 1,000 projects

300 MW

2.7 GW> 3,000 projects

Incoming goods inspection:

System tests &measurements (IR, IV, EL, VIS, ISO):

PV system repair and overhaul :

Expert reports (insurance damage)

Performance reports and technical Due Diligence

Total Experience

> 1,800 projects

• E.on• First Solar• IBC Solar AG• Juwi Energieprojekte• KOSTAL Industrie Elektrik• LG Chem• Masdar• REC Solar • R+V Allgemeine Versicherungen • RWE• SolarWorld• Sonnedix• Soventix• Stadtwerke Münster • SV Sparkassenversicherung• Viessmann• VR Leasing • Westfälische Provinzial Versicherung

Selected clients

Client List Note: ADLER Solar also work on assignments considered confidential, so above list is not exhaustive.

Track record

Offshore renewables

Offshore Oil & gas

Solar

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Notes: (1) Tristein AS included from May 2014; OWC Ltd from July 2014(2) Figures excluding ADLER Solar

Highlights Q2 2016

Pipeline of work expected from call out contracts continues to look positive, but visibility is limited

Backlog upside affected by re-focused strategy of supporting clients on day-to-day service operations which are typically short term/call-out contracts that are not included in backlog

Backlog levels have remained relative stable over the last quarters and is mainly related to investment projects

0

5

10

15

20

25

2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

Ord

er b

ackl

og

(USD

m)

Order backlog – quarterly development

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6,9

11,310,6

11,4 11,4

9,58,8

6,9

8,2

0,0

2,0

4,0

6,0

8,0

10,0

12,0

2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

Rev

enu

e (U

SDm

)

-1,0

0,0

1,0

2,0

3,0

4,0

Middle East Far East Europe Americas Other

Q2 15 Q2 16

Highlights Q2 2016

Several entities impacted by lower activity level in the oil and gas market

After weak start of quarter, operations improved substantially during Q2 2016 for entities in Europe

Revenue development and geographical split

Notes: (1) Figures excluding ADLER Solar

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Cash balance per Q2 2016 of USD 11.7 million

No interest bearing debt

Strong balance sheet provides opportunities for future growth

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36

12

5

9

4

Assets Equity and Liability

Equity

Currentliabilities

Intangibleassets

Cash

Receivables

Other

Solid balance sheet – Q2 2016

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Selected projects

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Gina Krog will be developed via a new, standalone, 20 well, 70 bed jacket platform, which has a designed production capacity of 60,000 bbls/d of oil and 9,000,000 m3/d of gas. Gina Krog is a Statoil led consortium with 1st production scheduled in 2017

TPI Megaline’s heavy transport vessels “Mega Caravan” and “Mega Caravan 2” were used for the two voyages from the fabrication shipyard in South Korea to the Gina Krog field at the Norwegian continental shelf.

The first vessel carried the 12,000 MT Integrated deck

• The second vessel carried

• 5,000 Te process module

• 4,000 Te unity module

• 300 Te flare bloom

The vessels sailed in July 2016.

Gina Krog Transportations

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Working for the carrier, TPI Megaline

• Sea fastening and grillage design

• FEM analysis of the grillage/sea fastening and vessel structure

• Deflection analysis, buckling check

• AFC AutoCAD drawings including validation report

• Provision for vessel local strength check and vessel modification for load out and transportation (frame/BHD reinforcement) if needed

• Both loadout (by skidding and self-propelled modular transporter) and transportation load cases are considered in the FEA

Gina Krog Transportations

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Geoje, South Korea

Ichthys Field, NW Australia

• Position Keeping Marine Procedure and Execution - jointly by POSH Terasea and Aqualis Offshore

• Shortest Route ~ 36 / 45 days towing

Ichthys project – positioning of FPSO and CPF

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Name BHP BP DP Year Built

Terasea Falcon

16,300 205T DP1 2013

Terasea Hawk

16,300 203T - 2013

Terasea Eagle

16,300 203 T DP1 2013

Terasea Osprey

16,300 205 T DP1 2014

POSHChampion

(escort tug)16,000 194T DP2 2011

Ichthys project – positioning of FPSO and CPF

• 4 x BP200 ton tugs + 1 x BP200ton standby tug

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FPSO

16 mooring lines (spread) in clusters of 4

Mooring lines are to be pre-installed and pre-laidon the seabed, before the vessel arrives in field

CPF

28 mooring lines (spread) in clusters of 7

• Engineering

• Position Keeping Marine Procedure and Execution

• Attend offshore to supervise the station keepingoperation

• Provision of 4 x Station Keeping Masters

• 24 hours operation

WD –FPSO 249m

WD – CPF 251m

Ichthys project – positioning of FPSO and CPF

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World’s largest jack upGusto MSC CJ70 design150 m water depth capability (214 m leg length)

Long term contract with Statoil at Mariner FieldWill be operating in 110 m wd and 69 m air gap

Arrival now offshore Scotland

Aqualis SoW is:• MWS services (rig move and dry transportation)• Site Specific Engineering Assessments• Rig move consultancy

Rig Moving Operations – Noble Lloyd Noble

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Oslo Plaza 117m

London Gerkin 180 m

NLN 214 m

World’s largest jack up

Rig Moving Operations – Noble Lloyd Noble

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ALYESKA oil spill response barge modifications

• Scope of work covers designing modifications to two oil spill response barges operating at Valdez in Alaska

• The first barge, “450-6”, requires addition of accommodation, associated marine systems and power generation

• The 2nd barge, “Mineral Creek”, requires addition of lightering systems so it can remove oil from damaged tankers and transfer to smaller barges

• The work comprises engineering design and construction supervision, dealing regulatory matters such as Class and US coastguard

• Scope include evaluation of different options such transfer of accommodations between barges instead of new-build quarters

Alyeska pipeline company is owned jointly by BP, Conoco Phillips Transportation, Exxon Mobil Koch Alaska Pipeline Company and Unocal

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The UZ750 project is one of the major offshore field development projects in the UAE. It is located 80km off the coast of Abu Dhabi, and involves the construction of four production artificial islands.

The second phase involves the development of the facilities on the islands.

Up to 22 production modules comprising a wellhead control and oil processing unit are being constructed. The facilities are expected to come on stream in 2017.

Upper Zakum 750 Islands Surface Facilities project

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Upper Zakum 750 Islands Surface Facilities project

The Project involves 13 shipments to Abu Dhabi from

• Bomesc, Tianjin

• DSME, Korea

• Dynamac, Singapore

2 shipments so far. First was 2 barges loaded with modules onto on the HLV “Black Marlin” from Bomesc shipyard, Tianjin (China). Second was loaded from Singapore.

Aqualis undertaking:• Loadout quayside mooring and ballast plan• Barge motion analysis and transport stability• Barge local strength checks• Slamming and submergence checks on barge overhang from HLV• Provision of Client’s Marine Representative during loadout and float-on operations

Currently working on next 3 shipments from China, Korea and Singapore. 8 more shipments to follow.

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MWS for Pre-Salt FPSO’s

Marine Warranty Surveyor for the Integration of FPSO’s MV27 and MV29 by Modec at BrasFELS shipyard in Rio de Janeiro.

MWS for the Integration of FPSO P-76 at Techint Yard in Paranagua.

MWS for Marine Operations and Departure of the FPSO P-66 of Petrobras at BrasFELS shipyard.

Provision of highly experienced surveyors and engineers familiar with local shipyards and client requirements and who added value on site.

Key activities:

Loadouts, Transportations and Installation of Modules and High-Value Equipment

Quayside Mooring and Tow to Field

MV27 currently at the field ready for First Oil.

All FPSO’s to be installed at Pre-Salt Fields

MV 27

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Our geotechnical team based in London includes 5 geotechnical engineers working onshore, and 10 offshore representatives.

All are specialists in:

• Offshore site investigations

• Cable route risk mitigation

• Jack up leg penetration analyses

Geotechnical Engineering

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Aqualis Offshore staff have scoped, managed and supervised site investigations for over 10 of the UK offshore wind farms.

“Live SI 1.0” tool was created for East Anglia Offshore Wind farm, reducing their total cost by >£1m, and resulting in shortlisting for the Ground Engineering Awards. “Live SI 2.0” is due in the market Q4 2016.

Other offshore wind farm site investigations managed recently include for Hornsea (soon to be the biggest offshore wind farm in the world), and for Horns Rev 3.

The Offshore SI side of the business has raised our profile and allows us to market other services at the start of offshore wind projects.

Offshore Site Investigations

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Through secondments into offshore wind developers, Aqualis Offshore staff are at the cutting edge of:

• Cable burial risk assessments to recommend burial depth, and advise on related risk

• Scoping of cable installation both offshore and onshore;

• Reviewing seabed bathymetry throughout the life cycle of a cable to predict future risk;

• Back analysis of trenching data to ensure the efficient and cost effective use of trenching tools.

Similar work is also being provided to OFTO developers, as well as project management services.

Cable Route Risk

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Asset risks

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Idle Tonnage

• Huge investments made into new O&G assets during last decade

• Heavy recession in Oil and Gas Markets

• Many assets either now laid up / stacked or will be

• Are owners / underwriters / investors at Risk?

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StackingMove to location

Moorings

Preservation Inspection Maintenance

New Contract

Reactivation Mobilisation

The Stacking Cycle

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Considerations

Stacking considerations:

• Hot stacking

• Warm stacking

• Cold stacking

• Long-term cold stacking

• Running costs

• Lay up plan

• Assessment of risk factors and mitigating measures

• Insurance/Class

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The Risks

• Deterioration of equipment condition

• Moorings / site weather protection

• Fire

• Unit security - Equipment loss/theft

• Environmental pollution

• Water ingress

• Insurance / Class

• Corrosion / Degradation

Leading to reduced asset value and high reactivation costs?

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Outlook

• The overall oil and gas market is expected to remain challenging in 2016 and into 2017

• Activity level in Q3 2016 will be impacted by the monsoon period offshore India and vacation months

• Q2 2016 has indicated that there are still opportunities within smaller consultancy work available in all regions. Aqualis aim to continue to increase its’ market share in the consultancy fields

• The short term outlook for offshore wind in Europe is good, but the market is competitive with low margins

• ADLER Solar is repositioning its services and organization to target higher margin projects and implementing cost measures to improve its profitability

• Aqualis will continue focusing on improving its profitability and competitive position and being adaptive to changes in market conditions

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Q&A

aqualis.no